US embassy cable - 05MADRID1819

UNCLAS MADRID 001819 
 
SIPDIS 
 
STATE FOR EB/TPP/MTA ROBERT DOWNES/ANISSA WHITTEN 
 
E.O. 12958: N/A 
TAGS: ECON, ETRD, WTO, Trade Issues 
SUBJECT: SPANISH VIEWS ON WTO SERVICES NEGOTIATIONS:REVISED 
OFFER 
 
REF: REF: STATE 81619 
 
1. Summary: The GOS devotes significant staff to services. 
Insurance, telecoms and banking are Spain's main interests. 
The EU is making an effort to improve its services offer 
according to GOS interlocutors.  The EU has not shared with 
Member States examples of alleged "roll-backs".  The EU is 
planning to improve its Mode 4 offer, although it will 
probably not make an offer in May for numerical ceilings for 
economic needs tests (ENTs).  End Summary 
 
2. Trade Policy officer met on May 12 with Ministry of 
Industry,Tourism and Trade Subdirector General Jose Alberto 
Plaza Tejera and Cristina Calvo to discuss the issues raised 
in reftel. 
 
GOS DEVOTES SIGNIFICANT STAFF TO SERVICES 
----------------------------------------- 
 
3. The unit that Tejera head ups has eight professionals 
working full time on services.  In addition, other Ministries 
contribute expertise such as, for instance, the Ministry of 
Finance for banking services.  Tejera expressed confidence 
that the GOS could engage on the international services 
debate despite its personnel intensive nature.  Somebody from 
his office goes to Brussels once or twice a month to attend 
133 Committee meetings on services. 
 
SECTORAL INTEREST IN SERVICES TRADE NEGOTIATIONS 
--------------------------------------------- --- 
 
4. Spanish insurance, telecoms (specifically Telefonica), 
energy companies, and banking firms are interested in the WTO 
services talks.  However, they tend to be focussed on 
specific issues arising from investments overseas, rather 
than the broader policy issues stemming from trade, not 
investment, in services.  Telefonica is an exception, 
however, with a full time staff person devoted to following 
international trade talks. 
 
NO DETAIL ON ALLEGED "ROLL-BACKS" 
--------------------------------- 
 
5. Tejera said the GOS was not aware of a lack of ambition or 
"roll-backs) with respect to the American services offer.  He 
said the Commission had not shared examples of roll-backs 
with the Member States.  He promised to get back to Trade 
Policy Officer if he learned of any examples. 
 
EU MOVEMENT ON MODE 4 LIKELY 
---------------------------- 
 
6. Tejera said there would likely be an improved EU offer on 
mode 4.  He said the developed countries had to make a 
"gesture" to developing countries.  In his personal view 
though, even a new and improved EU offer would not be enough 
for developing countries.  He mentioned that the EU is 
considering a better offer for contractual services suppliers 
and independent professionals. With respect to the latter, he 
said the Commission was studying allowing legal services to 
be included.  Conditions for supplying services would be 
stringent though.  Local wage and benefit levels would be 
mandatory, and there would be a six month limitation.  Tejera 
noted that the EU would not be able to make an ENT offer this 
month.  In general, the EU is still studying how make Mode 4 
commitments conceptually compatible with immigration regimes. 
 He acknowledged this was a tough problem for the U.S. and 
the EU. 
MANZANARES